A growing opportunity for investors in warehouses and industrial properties is the potential to offer cold storage, to meet a rising demand. BisNow has a recent article, about the growing demand for cold storage facilities, Grocery Delivery, Cold Storage Demand Grows Across The U.S.
As the grocery delivery market continues to expand, that boom could drive up demand for cold-storage spaces by 35M SF over the next seven years, CBRE reports.
“As e-commerce expands further into the grocery business, the resulting growth of the food supply chain and demand for new, climate-controlled warehouse space could very well be the new opportunity that investors and developers have been seeking,” CBRE Global Head of Industrial & Logistics Research David Egan said in a statement.
Online grocery sales are expected to increase from 3% to 13% of all grocery sales by 2024.
There could be a great potential for those looking to invest in strategic warehouse properties which can be fitted to be cold storage facilities. Likely, the greatest demand will come around Philadelphia and the suburbs. Areas like Lancaster County or in Southern New Jersey, like Salem County, could see increased demand for warehousing and cold storage.
In addition to suburban areas, which should see increased demand, we could see value-add plays in and right around Philadelphia, with real estate investors looking to meet the e-commerce need for last mile delivery.